Construction Partners Builds Momentum With Texas Expansion

Construction Partners, Inc. ROAD or CPI has completed the acquisition of eight hot-mix asphalt plants, along with associated crews and equipment from certain affiliates of Vulcan Materials Company VMC.

These acquired operations, located throughout Houston, TX, will now become part of Durwood Greene Construction Co., a company ROAD had already bought earlier in August 2025. Through this deal, CPI not only gains new asphalt plants and equipment but also skilled workers who share its values of safety, quality and customer service.

Per Fred J. (Jule) Smith, III, CPI’s president and chief executive officer, “Today's acquisition significantly expands our operations in the fast-growing Houston area while reinforcing CPI's strategy of building better markets and strategically growing our geographic footprint in Texas.”

ROAD stock has lost 1.2% during yesterday’s trading hours and moved down 1.4% in the after-hours.

ROAD Gains on Market Strength

This civil infrastructure company specializing in the construction and maintenance of roads, highways, bridges and airports across the Southeastern United States, is well-positioned for continued growth in 2025, driven by multiple reinforcing factors. Ongoing strength in public infrastructure funding across the Sunbelt region continues to support a robust and steady pipeline of work.

As of the end of the third quarter of 2025, CPI reported a record project backlog of $2.94 billion, indicating an increase of 58.1% year over year. Notably, approximately 80% to 85% of the company’s expected revenue for the next 12 months is already secured through backlog, providing strong visibility into fiscal 2026 performance. The company is also benefiting from the successful integration of acquisitions, including the recent additions of Lone Star Paving, PRI and Durwood Greene Construction. 

Management remains focused on long-term growth and strategic value creation, leveraging both organic expansion and selective acquisitions. Moreover, it continues to pursue strategic investments in growing markets while maintaining a disciplined balance sheet.

ROAD stock has gained 71.1% in the past year, against the Zacks Building Products - Miscellaneous industry’s 7.5% decline. Despite facing macroeconomic challenges and inflation risks, Construction Partners remains well-positioned to deliver long-term growth driven by recent acquisitions and robust public infrastructure spending.

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ROAD’s Zacks Rank & Other Key Picks

Currently, Construction Partners carries a Zacks Rank #1 (Strong Buy).

A couple of other top-ranked stocks from the Construction sector have been discussed below:

Everus Construction Group Inc. ECG presently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Everus Construction delivered a trailing four-quarter earnings surprise of 42.7%, on average. ECG stock has jumped 23.2% year to date. The Zacks Consensus Estimate for Everus Construction’s 2025 sales and EPS indicates growth of 18% and 3.9%, respectively, from the year-ago period’s levels.

Great Lakes Dredge & Dock Corporation GLDD flaunts a Zacks Rank of 2 (Buy) at present. The company delivered a trailing four-quarter earnings surprise of 45.3%, on average. Great Lakes Dredge & Dock's stock has gained 3.9% year to date.

The Zacks Consensus Estimate for Great Lakes Dredge & Dock’s 2025 sales and EPS indicates growth of 9% and 21.4%, respectively, from the prior-year levels.

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This article originally published on Zacks Investment Research (zacks.com).

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